Stop Foreclosure Man To The Rescue! (Michigan)

My Blog Has Moved!

2008-05-20T20:34:00.002-05:00

Yes, the BLOG is alive and well again! It's been recreated and is better than ever before because now, you get to meet the entire team.

Come visit Michigan's #1 Foreclosure Solution Team Here:
http://www.stopmichiganforeclosure.com/blog/

It's Harder When You Know Them

2006-06-21T19:37:00.000-05:00

Last week, I met with a family that I personally knew, as friends, before they started having problems with the house. Boy, this makes it that much tougher to deal with (for me) emotionally.

It's always been tough on me learning what's happened to people to cause them to get behind. In this case, there were health issues, a 2-year old with some health issues, and now the couple is separating and filing for divorce.

It's not easy, but I find that all I have to do is focus on the emotional stress of the foreclosure that I'm removing for them, and know that no one else could possible eliminate that nightmare for them like I can.

Until next time…

Joel

"ARMs are a ticking time bomb"

2006-06-19T18:58:00.000-05:00

My PC crashed a little over a week ago, so I've been in catch-up mode ever since. I can see the light at the end of the tunnel now, so the blogs should be more frequent!

This article pretty much explains why about half of the families I help have adjustable rate mortgages. If you're sitting on one of this time bombs, well, you already know what to do.

Joel

More Borrowers Falling Behind

2006-06-04T18:03:00.000-05:00

According to this article, you are NOT alone if you are falling behind on your house payment. The article states several reasons why (slow Michigan economy, adjustable rate mortgages, downsizing, etc.) Getting behind is NOT your fault - failing to take action to correct it IS!

Joel

Kalamazoo/Battle Creek - #44 in Foreclosures

2006-05-31T05:17:00.000-05:00

This article reports the top 100 foreclosure rates in metropolitan areas. You'll notice many Michigan cities/metro areas in the report, most in the top 50. It's really just a sign of the times, as the article states:

"Most of the cities with the highest foreclosure rates have above-average unemployment rates and below-average home price appreciation. Unemployment is a major reason why homeowners stop making mortgage payments, and slow home price appreciation can make it harder for homeowners in default to refinance or sell to stop foreclosure."

This pretty much sums up the situation for many of the families we help on a daily basis (and certainly describes the Kalamazoo/Battle Creek economy). It's nothing to be embarrassed about because it's simply out of your control.

What is in your control is what you do about it - which is why our team is here for you - to take control!

Joel

Don't Wait

2006-05-25T04:58:00.000-05:00

I was recently contacted by a gentleman who is a week away from having his house auctioned. a the foreclosure sale. He has run out of options and now wants my team to step in and buy his house. As you can imagine, he has extremely anxious for our help after living for weeks with an impending foreclosure and seeing his options one, by one disappear.

We will do everything we can for him, but at this late date, the odds are against us. You see, it takes time to contact the bank, fax them the necessary paperwork and confirm they received it, talk to a live person at the bank about the situation, take pictures, have a contractor give us estimated repair costs and the hundreds of other things that have to happen.

Plus, this homeowner isn’t the only person in trouble that the bank has to deal with. The bank may not be able to give his situation the attention it needs in the short time available. The average person at the bank dealing with foreclosures has 100’s of files on their desk, so it is hard to get their attention on any particular one.

Make no mistake, my team has been doing this long enough to have key relationships established and to know a few tricks to try to defuse this time bomb. Wish us luck as we do everything we can to get this homeowner back to better times.

Don’t wait – call us now. The more time we have to do what we need to do to help you, the more effective we will be and the more options you will have.

Joel (aka Stop Foreclosure Man)

Sheriff Sale

2006-05-23T16:54:00.000-05:00

We continue to add people to our team - there's just so many people to help!

Last week, Kelly started attending the Kalamazoo County Sheriff Sale of foreclosed homes. She was amazed at the number of homes auctioned that day. She was also amazed that the Court Official just read out loud, in the middle of the lobby of the Kalamazoo County Courthouse the homeowner’s name, address, foreclosing bank, and amount owed. Of course, this is what the court official is required to do to give other people a chance to come in and make additional bids on the home.

The day Kelly was there at the auction, no one stepped in at the last minute to buy any of the homes (as is the case 99% of the time, it goes back to the foreclosing lender) Sad, because if these people had contacted us with enough time, we could have had a chance to save them this public humiliation process.

Plan "B"

2006-05-11T05:14:00.000-05:00

When we sit down with people who realize they can't afford their house any longer (due to one of these reasons), we offer to try to purchase their house prior to the foreclosure. We are able to do this when no one else can because we discount the amount they owe to their lender. This we call "Plan A".

Plan "A" results in the best of all worlds in that the foreclosure is stopped and they are given a chance to start over with just late payments on their credit.

Sometimes there's not enough time to get their lender to act before the foreclosure, or the lender simply won't accept our offer. In that case we move to Plan "B".

Plan "B" unfortunately includes the lender going through with the foreclosure. Obviously, this is not the best thing to happen, but there can still be something done to help improve the homeowner's situation. The house can still be sold following the foreclosure, and there's usually plenty of extra time to do this (called a redemption period). Here's how we can help.

When the house is sold during this time, a "foreclosure - cured" or "foreclosure - redeemed" is placed on the credit report. It's not the best situation, but it's definitely better than a full blown foreclosure.

We help by getting the lender to discount the debt (just like in Plan "A"), the big difference is that we line up someone to sell it to first, then we ask for the debt discount. This allows us to ask for a much smaller discount and therefore have a much better chance of acceptance.

So, to summarize:

Plan A and Plan B are the same in that we'd buy it from with the bank allowing a discount of the debt.
Plan A requires a bigger discount because we'd buy it without having someone lined up wanting us to buy it from us.
Plan B requires us to find someone to buy it from us first.

My wish is to always make Plan "A" work, but sometimes that's just not going to happen. In those cases, I think it's awesome that our team came up with Plan "B" instead of allowing a full foreclosure to remain on the credit report for 7-10 years.

Joel

"My Bathroom Blew Up"

2006-05-08T05:30:00.000-05:00

One of the 1st things I ask homeowners facing foreclosure when they call me is “tell me a little bit about the house.”

Yesterday, I had a guy tell me his bathroom “blew up” and he was turning one of the 3 bedrooms into the new bathroom, but “parts” of the old one were still there. Of course he was behind on his payments (hours cut at work because of the bad economy) and the house was worth a lot less than what he owed.

When I went to the house, the house needed a lot of work - not just the blown up bathroom. But, regardless of the condition, I always have a chance of stopping the foreclosure, rescue him from this disaster and save his credit so he could start over. The house required way to much work for my team, so we sold it to someone who’s put a few months work into it and stands to make a nice profit. Everybody won - buy especially the homeowner.

Wednesday morning of this week, I'm heading with my team to central Kentucky for a big "mater mind" session with other foreclosure specialists. There's just so much "in the details" in this business we have to stay up to date by spending time with others around the country - about every 2 or 3 months seems to be the trend lately.

So, because of the travel, this may be my last post for over a week. I'll be sure to update you upon our return. Joel

Everything was going along fine, until….

2006-05-05T11:06:00.000-05:00

When I start working with people to help stop their foreclosure, one of the first thing I ask them to do is write a hardship letter. This letter always starts out “Everything was going fine, until….” And goes on to describe what bad things happened to put them behind on their house payments. Even though your situation is complex, difficult and overwhelming, it is not unusual in today’s economy. Look at how some recent hardship letters started and you will see that bad things happen to good people, just like you.

Everything was going along fine, until I was laid off and my consumer energy bills doubled. My Insurance company wanted me to pay $XX or they would cancel my insurance on my cars.

Everything was going along fine until I was taken to emergency several times and then had to have surgery and was hospitalized for 18 days.

Everything was going along fine until I lost my job which I was making $xx an hour. I’ve been going from job to job making anywhere from $xx-xx an hour (half as much as before). I have drained my entire retirement fund, borrowed money from friends and family just to make ends meet.

Remember also, that you are not alone because I am here to help. Let me and my team get you back to better times.

Don't Try Anything "Extreme"

2006-05-03T05:21:00.000-05:00

Facing Foreclosure? Don’t feel bad, even commercial properties face foreclosure and for them, making a comeback is a tremendous task. Take the example of Sugar Loaf resort in Cedar Michigan (see story).

After going into foreclosure for at least the third time since it opened in 1962, the new owner is going to try focusing on snowboarding and other extreme sports to bring revenues back to the resort and get it back on its feet.

You don’t have to create a “destination resort for snowboarders” or do anything else "extreme" to recover from your foreclosure. In fact, you can avoid foreclosure all together. Just call Stop Foreclosure Man and get help now!”

Joel

Don't Be A Whimp

2006-04-27T05:11:00.000-05:00

OK, I'm getting a little frustrated. I coach a lot of people on how to deal with their lender to enable to keep their house. Yes, I charge nothing for this, so I get to vent a little :-) so I'll share my frustrations.

When you're talking to these guys (the lenders) you've got to realize that you're negotiating to keep your home! Act like it - be passionate! Keep bugging them until you get a commitment, or keep asking for a supervisor (or their boss, and their boss) until you find someone that will work with you to keep your home.

Remember, it's just a job to these people, and if they want to leave at 5pm (or mail you a package), most will leave and lose your stuff by the next day. Take the lead!!

I'll let you know what's reasonable for the lenders to expect (as for as $$, paperwork, etc.) - you've simply got to keep following up. Do NOT sit around waiting for them to call you back, or waiting for mail or a fax. Actually, NEVER let them mail anything - it takes way too long. Have them fax it. Don't have a fax? Someone that you know has one, or bite the bullet and have them send it to Kinko's. Each day (and hour) that ticks by brings you that much closer to losing your house - take control!

Some people are upset with me because I won't jump on the phone and negotiate for them (on occasions I have). Here's my theory, if you're passionate, you'll do a much better job than I will because I'll coach you. Some families have hired firms to negotiate for them. What a waste of money - don't bother. They seldom are more success than you can be, plus, even if they offer your money back if they fail, everyone I've talk to that have tried them can not get their money back.

OK, I think I'm done venting now.

Today I'm heading out with Jen to see three new families for us to help stop their foreclosure. Stop Foreclosure Man's job is never done.

Joel

New Team Member

2006-04-26T05:47:00.000-05:00

Well my meeting with my potential new team member went very well! Jen is joining my team, and has a very important responsibility – helping to get the word out.

Everyone I help with stopping their foreclosure is always grateful they called me (even if I fail to help, they always feel better because they know more (see this entry). The problem is, there are so many people that need my help (over 600 foreclosures in Kalamazoo County in 2005) but they just don’t know the magic that I can work (their word, not mine). Because of all of the scam artists out there (see http://www.homeownerwarning.com), many people are either skeptical or they are still in denial of the foreclosure situation.

So, Jen has offered to help reach more of these 600+ families this year. She’ll be calling them and visiting them to let them know that I’m here to help, at no charge, and won’t put them in a worse situation.

My hope is that since you’re reading this, and need my help, you won’t wait for Jen to be calling you, that you’ll call me. The more time I have to help, the more options you have available to you.

Until next time…

Joel

You're Not Alone

2006-04-20T05:22:00.000-05:00

I've mentioned before about how you shouldn't feel guilty if you're facing foreclosure or behind on payments. There's been articles about how Michigan is tops in the nation in foreclosure rate, 600+ in Kalamazoo county in 2005, blah, blah, blah.

I know at that heart of it, it doesn't really matter if it's YOUR family that has the financial difficulty. None the less, a picture speaks a thousand words.

This map (click the map for a larger image) ...

... is a map of most of the foreclosures that have occurred in Kalamazoo County over the last six months.

Each of these families have a unique story - something devastating that happened to them to start their financial world spinning out of control into the eventual nightmare of a foreclosure. So yes, you're not alone.

What's important on this map are the locations that are not on it. That would be the families that my team has helped prevent the foreclosure. Now that's something to be encouraged about. Want more encouragement? See what these families went through and what had to say by going here.

Joel

Most Common Events Leading Up To Foreclosure

2006-04-19T05:27:00.000-05:00

Not much time this morning, so I just wanted to share this information from my website www.StopMichiganForeclosure.com

Loan Fraud: Sinfully over-inflated, pie-in-the-sky false promises of a mortgage broker who just wanted to make a buck (no matter what happened to you when their fancy pants financing scheme fell apart!)
The heartbreak of an unexpected divorce, and the accompanying financial devastation of trying to stay afloat both emotionally and financially. Besides, who wants to stay stuck in a house of pain?
Unforeseen medical problems or disabilities that drain every penny for treatments, medications, hospitalizations, and procedures. There's simply no choice between a pile of bricks and boards and your health, or the health of a loved one. But the banks don't care, and neither will the judge in your foreclosure proceedings.
The shock of unemployment when your job suddenly evaporates. You've worked hard day in and day out, but the "company bottom line" doesn't give a rip either. You're expendable, replaceable, and GONE for good from their payroll.
Tricky and deceptive adjustable rate mortgages that suddenly send your payments soaring beyond what's possible. Should you feed your kids three squares a day...or make an obscenely high mortgage payment and live on ketchup sandwiches?
Other predatory lending practices like grossly inflated appraisals so the lender can put you even deeper in debt or undisclosed or impossible to understand loan terms which caused your payments to skyrocket overnight.
Or a tragic event, such as the sudden death of a family member, accidents, or a diagnosis of a terminal disease.

Sometimes things are so far beyond your control, there's nothing left to do but try and pick up the shattered pieces so you can begin to recover and move forward.

Joel

Wow, What A Week! – Let’s Talk Bankruptcy and Foreclosures

2006-04-16T16:25:00.000-05:00

Wow, what a week! I thought I’d have time during the week to give you updates, but with my wife out of town with family, it’s been kind of nuts to stay on top of everything, so unfortunately, the Blog had to suffer.

Actually, she won’t be back until late Tuesday, so you may not hear from me again until Wednesday.

Something so significant happened this week though, that I had to blog about it. It has to deal with Bankruptcies and how they relate to foreclosures. Specifically, a Chapter 7 (complete wipeout of debt).

Keep in mind, I’m not an attorney as I go through this.

I started working with two homeowners this week, each who thought their bankruptcies would prevent a foreclosure on their credit. Let’s start with the basics.

A Chapter 7 gives you option of putting the house into it or not. Keeping it out means you’ll keep paying on the house and be able to keep the house. Both of these families decided to not keep the house (they were behind on payments and owed more than the house was worth – a typical scenario).

The job of the bankruptcy court is to sell all of your assets, take (most of) the proceeds and split it up between the people you owe money too – yes, this is simplified, but that’s the general idea behind it.

When you owe more than the house is worth, after filing the bankruptcy, one of two things are going to happen:

1) The bankruptcy court will look at what you owe on the house and what it’s worth. They’ll then conclude they won’t make any “proceeds” from the sale, and release the house from the bankruptcy.
2) The lender will petition the court to release the house from the bankruptcy. They’ll claim it’s worth less than what you owe, and they want it released so they can foreclose and cut their losses.

Either way, the house comes out of the bankruptcy and the lender beings the foreclosure process.

Here’s the problem: Most bankruptcy attorneys don’t tell their clients that at the end of all of this, they’ll have a bankruptcy and a foreclosure on their credit. Why is this important? Most people can get a home loan after a year or two out of bankruptcy (some lenders can do it immediately after – at a higher interest rate). The point is, though, with just a bankruptcy, you can be a homeowner pretty quickly. But, with the foreclosure on their credit (which stays for 7-10 years), buying a new home in the next 5 years is almost impossible.

Why don’t attorneys tell their clients this? Well, you can make your own opinion. Just ask yourself this, if you knew what I told you above about your credit and the foreclosure, would your bankruptcy attorney get any money from you? ‘Nuf said.

So, what do you do? If you’re considering bankruptcy, get me involved before you file. I’ll work with your bankruptcy attorney and we’ll develop a plan to stop the foreclosure from being placed on your credit. If you wait until 3 weeks before the foreclosure (like the two families I started working with this week), I can still try, but the chances of success are much less.

Please Tell Your Realtor

2006-04-07T05:14:00.000-05:00

Today I talked to one seller who hasn't told their Realtor they are 4 months behind. I talked to a Realtor today (different house) about his listing that was in foreclosure and he didn't know it. WOW!

OK, let's get this straight - please. You know I'm not a real big fan of (most) Realtors. The vast majority are in it for the buck first and foremost. This is dangerous when families are behind on their payments, because often the best advice they could give you would negatively impact their pocket book.

Dspite how I feel, and the warnings I've given about choosing to work with them (see this link), if do chose to work with one and list your house PLEASE let them know if you are behind on payments or facing foreclosure.

You need to give them an opportunity to help you. Also, don't feel you're locked into a listing. Any broker (the Realtor's "boss") will release a distressed seller from a listing when better options are available to them. Be honest, tell them what's going on, get their opinion, and get the opinion of someone who specializes (full time) in foreclosures (um, that would be me, "Stop Foreclosure Man"). Shameless plug? Yeah, I know but hey, where else are you going to turn for the truth about foreclosure in Michigan?

Next week my wife (would that be "Stop Foreclosure Woman" or "Mrs. Stop Foreclosure Man"? - must be too early) will be out of town visiting her parents for a week, so you may not get a post from me every day as I'll have much more to tackle without her around. Wish me luck!

Joel

ARM Horror Stories

2006-04-06T05:54:00.000-05:00

This is just weird. Yesterday morning I commented on a USATODAY.com Article about one in 5 ARM (adjustable rate) loans being in default.

I then talked with three homeowners who are in this trap - all in one day!

1) A Portage family whose payments have gone up every 6 months for the last two years. When the guy got laid off for 3 weeks, it was enough to put them behind and never be able to get caught up.

2) The next couple is from Lawrence. Not only were they caught in this ARM trap, but they also fell for the "mortgage broker promise of refinance" trap. You may have experienced this too - it goes like this: "Don't worry, we'll get you refinance before the foreclosure". Yeah, right! The simple fact is, they want their application fee and know that unless you've got a TON of equity in your house, there's no way they will get you financed with 2+ late payments on your credit. Unfortunately, they waited until 2 days before the foreclosure before calling me so there was nothing I could do.

3) This morning (after I take the doggies to the vet), I'm heading to the west side of Kalamazoo to help a couple who has their house listed with a Realtor. They are listed at about $20K more than the house is worth because they had no choice. Not only do they have an out-of-control ARM on their mortgage, but they also have a 2nd mortgage and they owe significantly more than the house is worth. Actually, it's a condo - we do condo's too.

I've got several deals "in progress" with lenders working on discounts that should pop soon - looking forward to passing along that good news when it happens!

See ya tomorrow!

Joel

USATODAY.com Article - One in Five ARM Loans In Default

2006-04-05T17:34:00.000-05:00

If you only read one blog entry this entire month, this the must read - especially if you have an ajustable rate mortgage (ARM).

http://www.usatoday.com/money/perfi/housing/2006-04-03-arms-cover-usat_x.htm

Here are some significant quotes:

"Of the 7.7 million households who took out ARMs over the past two years to buy or refinance, up to 1 million could lose their homes through foreclosure over the next five years because they won't be able to afford their mortgage payments, and their homes will be worth less than they owe"

"Already, in West Virginia, Alabama, Michigan, Missouri and Tennessee, about one in five homeowners with a high-interest (subprime) ARM was at least 30 days late at the end of last year, according to the Mortgage Bankers Association. After 90 days, the foreclosure clock starts ticking."

The article includes some amazing stories - if you're facing a simular situation, you'll see that you're not alone. Many of these people will lose their house to foreclosure. The article also lists some places to go for help and advice.

Quite simply, for many people, life "events" happen and their houses simply become non-affordable. When that happens, let "Stop Foreclosure Man" come to the rescue!

Joel

The 5 Stages of Dealing With Difficult News

2006-04-04T05:06:00.000-05:00

We’ve all heard of these five stages before (Denial, Anger, Bargaining, Depression, Acceptance).

How does this relate to foreclosure? Well, a foreclosure is one of the most emotional experiences people will ever go through. I talked to a guy last night who said to me “I’d rather cut off my right arm than have to lose my home to foreclosure” – now that’s a powerful statement!

It’s important that you understand the basics of these 5 stages – whether we’re dealing with a lose of our own, or trying to help a friend or family member through the process.

I think it’s best understood with a simple example that we can all relate to – the dead car battery…

You jump in the car Monday morning for work and turn the key only to find just a cold “whirr…”.

Denial - First you try it again, right? “This can’t be dead – I just replaced it a year ago!” You check to make sure the lights, radio, windshield wipers, etc are all off and you try maybe several times to crank it.

Anger – You slam your fist into the dash-board. “Oh you stupid car! I can’t believe you’re doing this to me!! I’m going to get you towed to a junk yard tonight! I should have bought a new one last year when I had the chance!”

Bargaining – “OK, if you start this one last time, I’ll keep you forever. Please car, please! I’ll get you washed and detailed (inside and out), buy you a brand new battery, add some gas additive, get you a tune-up, you name it, you’ve got it. Just start for me one more time so I’m not late for work”.

Depression – “Oh what am I going to do? If I’m late one more time, I’ll probably lose my job. I give up, it’s no use”.

Acceptance – “Alright it’s dead, where’s the number for the tow truck so I can get it jumped. I’ve got to just move on and get to work – maybe I can get a ride from Joe. I’ll get this fixed later”.

This is a rather basic example, and of course not nearly as deviating as the prospect of losing a house to foreclosure. But this is the basic process, and we usually go through it several times a day. We stub our toe, cut ourselves shaving, dial a wrong number, bounce a check, you name it.

OK, back to foreclosure – the sooner you can get yourself, or the person going through a foreclosure at least through the “Anger” stage and to “Bargaining”, the better. I can not begin to help anyone with their foreclosure until they’re at least Bargaining.

Wow – we’ll have to give you some lighter reading tomorrow – that was pretty deep

See you then!

Joel

Memphis Arrival

2006-03-31T07:41:00.000-05:00

Had a great trip down to Memphis, but not much work got done yesterday :-)

Heading To Memphis

2006-03-30T06:39:00.000-05:00

I'm off to Memphis today, so have to be quick. I'll be meeting with two other successful "Foreclosure Prevention" business teams (from KY & TN). It's kind of a "Master Mind" session - we talk about ideas to make all of our businesses better and how to be more successful stopping forclosures.

I'll be back in Kalamazoo late Monday, but should have time to update you from the road while I'm gone.

Blog at you later!

Joel

4 New People To Help

2006-03-29T06:20:00.000-05:00

WOW! I don't know what happened yesterday, but the phone was going like crazy. I added 4 new families to help with their foreclosures! Usually, I talk to a couple new ones a day, but for some reason, Tuesday was unusual. Something in the water?

I also finally got a response from the Washington Mutual rep on a home I'm working on discounting the debt - making progress. This guy's a tough one, but it's FHA so he'll eventually crack. In the mean time, the family's still living happily in the home and the foreclosure has been stopped - so there's no loss.

Today I'm mostly focused on helping my partner sell some of her lease/option homes - at least that's the plan. My priority is helping new families that call me for help with a pending foreclosure or late payments.

I've also got to get ready for my long weekend to Memphis (more on this tomorrow).

I'll let you know tomorrow how this all went.

Until then…
Joel Zieve

What It's Really Worth?

2006-03-28T06:17:00.000-05:00

Wow! That's all I've got to say.

Yesterday I went met an appraiser at a house. The owners are trying to sell it. They owe $93,000. 2 years ago it appraised for $127,000.

What do you think the appraiser said it was worth yesterday? Same house, no major damage, no changes in the neighborhood?

$53,000!

Like I said - WOW!

How does that happen? When I tell people on the phone that refinance appraisals are ALWAYS incredibly over valued, I really mean it. This is a prime example. The bank wants to lend as much money as they can.

All is fine if the owners are planning on staying in the house a long time. But, when something happens and they can't afford it any more, and want out, what happens? They can't sell it.
Well, now I'm working on discounting the debt from $93,000 to a point where it could be sold. This is what I do! Will the bank go for it? We'll see.

Gotta run - more on this tomorrow!

"Stop Foreclosure Man" - Joel Zieve

You’re Not Alone

2006-03-27T06:36:00.000-05:00

I just picked this off of the newswire: http://www.ksbitv.com/business/2506646.html

In the article, there’s this quote:

Michigan reported 10,343 properties entering some stage of foreclosure, more than twice as many as were reported the previous month and one new foreclosure for every 408 households.

So, let’s see, foreclosures doubled from January to February 2006, one out of every 408 homes is in foreclosure, and the foreclosure rate in Michigan is in the top 3 in the country. And you’re still feeling guilty about your situation with the house?

Come on, it’s not your fault – look at the Michigan economy and what’s happening to everyone else around you!

The only reason to feel bad about this is if you’re not taking action to solve the problem. There are always options available to you. That’s why I created this website, so get into action and find a solution: http://www.stopmichiganforeclosure.com

Joel

New Web Sites Coming Soon

2006-03-24T06:00:00.000-05:00

Yesterday I told you I was looking forward to my meeting with our new web developer. It went great! It will be a couple of weeks before we'll see the new sites, but I'm pretty excited. Right now we've got web sites for several parts of our business (Foreclosures, Homes of Sale, a "Generic" site) and we've got ideas for other parts of our business. None of these existing sites are tired together and they all look different. This will tie them all together plus get us new ones.

Have no fear about www.StopMichiganForeclosure though as this will contain the same awesome information and still be Michigan's #1 place to go for stopping foreclosures. It will just look a bit different.

I'm a former computer geek so this stuff excites me. I'll let you know when the new sites are launched!

Oh, I also got 4 new calls (a busier day than normal) from people wanting my help with their foreclosures. After I sort through it, I should have some new stories to share.

Have a great weekend! I'm not heading anywhere - it will be a good "catch-up" weekend (don't you relish a ketchup weekend?). We're heading somewhere or have company coming every weekend in April, so this is the last one that will be all mine for a while.

Have a great one (weekend that is).

Joel

"I Can Not Change The Laws Of Physics Captain!"…

2006-03-23T06:09:00.000-05:00

… this of course is said with a strong Scottish ascent.

Now, if you're an original Star Trek fan, this needs no explanation. For those that aren't, here's a short one: Captain Kirk would frequently get his ship and/or crew in such situations that he'd need his chief engineer (Mr. Scott - "Scotty") to bail him out. He'd have to do things like re-start the engines in 5 minutes (a normal 60 minute process) or get the Enterprise to run at warp 12 (normal top speed is warp 8). More than one time, after this request, Scotty would reply "I Can Not Change The Laws Of Physics Captain!"

What does this have to do with foreclosures? Here's a story…

Yesterday I talked to a gal in Kalamazoo convinced she would find an answer to her problem - she just needed to talk to enough people. Now I'm all for that. Every person she talks to will have a different twist on the situation, and offer different suggestions. I certainly don't know everything! The problem is, she wanted it all. She wanted to keep her house, her cars, all of the stuff she bought on credit cards, but make most of the debt go away.

Let's just focus on the house. She had a "normal" (before she got behind) house payment of $1500 a month. She got behind because of health issues and a job loss (normal reasons that cause this - which is why so many people are losing their homes to foreclosure in Michigan. She wanted to keep her house, and have a payment of $800 a month. I did the math - she'd have to refinance at a rate of about 3% in order to get this done. There's two problems with this plan.

1) If she had perfect credit today (which she doesn't since she's 120 days late on her mortgage), the best 30 year fixed interest rate loan I've seen is a little under 6%. But of course because of her credit, no one will finance her - at any interest rate.

2) You can't get caught up by slowing down. Here's the analogy: If you're in a row boat with a small leak (a mortgage payment), as long as you keep bailing the water out (making your normal monthly payment), you're OK - you won't sink. If you stop bailing for a period of time (lose your job and can't pay), and want to not sink, you have to bail faster (start making bigger payments). She wanted a way to plug the hole (get rid of her mortgage payment but keep the house), but of course, you can't change the laws of physics.

I felt bad when I hung up - I tried to help and explain there were other options besides the eventual foreclosure that was bound to happen. But, she was just so focused on the belief that someone would have an answer, there was nothing I could do. She's going to have her head in the sand for 4 more weeks until the foreclosure sale at which point it will be too late for me to help.

The moral to the story? Realize that no one, not even Scotty, can change the laws of physics!

Today I'm meeting with a web developer as many of my web sites will be complete changing of the next month. This is exciting stuff! I'll have a report tomorrow.

See ya then!

Another Idea To Save Your Home

2006-03-22T06:16:00.000-05:00

Here's an idea that came up last night. A gal called me who lost her job and was 3 months on her mortgage (soon to be facing foreclosure), but REALLY REALLY wanted a way to keep her house. We went through many options and concluded there was only one remaining:

Sell the house to someone - either me at a discount, or someone she knew, willing to pay slightly more than what it was worth. Who would do that? Her daughter - great idea!

So, her daughter will be talking with one of my mortgage guys today to see how soon she can close. Hopefully this will work on for the best - keep your fingers crossed for them!

Joel

Michigan foreclosures double in two years, now 2 1/2 times U.S. rate

2006-03-21T05:51:00.000-05:00

I just found this article on the news wire today: http://www.mercurynews.com/mld/mercurynews/news/breaking_news/13972406.htm

Kalamazoo County is the 4th highest county in Michigan outside of the Detroit metro area.

If you’re facing foreclosure, what does this mean? You’re not alone. Honestly – bad things happened to good people all of the time, and it’s doubled in Michigan. Stop blaming yourself and just do something about it! (That’s why I’m here – put me to work).

Later!

Joel

Mortgage Broker Meetings

2006-03-17T06:45:00.000-05:00

Yesterday I met with 2 mortgage brokers. Why would I do that?

When people fall behind on their payments, one of the things they usually do first is try to refinance their loan. In VERY VERY RARE cases this can be done - there needs to be a TON of equity in their homes. Why is this? Lenders lend based on credit and just 1 or 2 late payments on a mortgage are usually enough to prevent anyone else from lending people money. Make it 3 or 4 late and forget it.

The majority of mortgage brokers out there unfortunately try to take advantage of people behind on their payments. They make promises like there's no tomorrow, simply to extract fees form these people that are already in financial hardship. Then, when it comes time to close the new loan, something always "comes up" and they can't do it. Before you pay any $$ to a broker or lender for a refinance, check out this page.

But, I digress :-)

Back to my meetings. You see, these 2 brokers are special. Special in that they don't take advantage of people. They let them know within a couple of days if they can help them. I met with them to explain how I can help the people they can't help.

When a family is faced with the reality of a pending foreclosure, and the house is worth more (or the same) as the debt, no one will help (attorneys, realtors, brokers, etc.) There's just nothing they can do. I come in and discount the debt with their lender and save their credit from getting worse. This allows these families to start over, not from the bottom (after a foreclosure), but only with late payments.

These two brokers see the big picture. I save someone's credit, they help build it back up, and within a year or two, these families are back being homeowners and these brokers get to put them into a new mortgage. Everyone wins! That's why they'll be sending me referrals and allowing me to help more families.

Today, I'm meeting with a new person we're adding to our team. He's going to help get the word out to more people facing foreclosure so we can help more of them out. Monday I'll let you know how it went!

Have a great weekend!

A Mid-Week Day Off?

2006-03-16T06:08:00.000-05:00

Well, not quite. Yesterday, I planned on cleaning the vehicle (what a mess), changing the oil, etc. Although all of this got done, I found myself on hold a good part of the day with lenders following up with them on different homes I'm working on.

Sometimes the only viable solution for families is to sell their homes (they realize this when they see they can't afford the payments any more). Most of the time, they need to get the debt discounted so they can sell it (because they simply owe more than it’s worth). So, most of my time is spent negotiating with lenders to reduce the debt so their homes can be sold (either to me a third party investor).

Now "negotiating debt with the lender" doesn't sound like a very time consuming process. And when it actually gets down to a conversation, it's not. The time challenge comes in 1) getting them the mounds of information they need to decide, 2) finding the right person to get it to, 3) getting that person on the phone to talk. I can often spend almost half of my day on hold!

That was yesterday - fortunately, I had other things I could do!

It was a very productive day, just not very exciting to watch (unless you like watching someone work on their vehicle). I’m sure I’ll have a more exiting report for you tomorrow!

Joel

My Real Estate Attorney

2006-03-14T05:55:00.000-05:00

Yesterday, I (kind of) blasted attorneys. Most are so focused on protecting their interests first, it’s a joke.

I’ve been working with a Kalamazoo Real Estate Attorney that’s an exception. Down to earth, talks in English, and is solution oriented!

If you ever need one, I’ll give you his number.

Anyway, I met with him yesterday to fine-tune some of my processes, make sure I’m still doing everything I can to stop foreclosures, and to learn a little more about the foreclosure process in Michigan.

Of course I’m not an attorney, but I need to understand Michigan foreclosure law pretty well to be able to stop foreclosures (makes sense, eh?)

So, I invested a couple hours with him today (at $100/hr !) so I can better serve my clients. An investment I’m always willing to make.

Until tomorrow - Joel

“I’m Scared”

2006-03-14T05:40:00.000-05:00

Yesterday I went to see the family in Parchment that I started working with last week. The husband said to me something I know that all families are feeling when I meet with them – “I’m scared”. This I knew, because everyone I meet with is scared – this was just unusual in that he admitted it.

There’s nothing wrong with being scared during a time of the unknown. What could be more unknown than the foreclosure process? Not only is it something that most families don’t go through, it’s something that’s almost “forbidden” to talk about. Who do we turn to that won’t make us feel guilty or ashamed? Family can sometimes be the worst!

Fear (with anything) tends to be reduced when we get educated. Because, it’s really just fear of the unknown. A good place to get answers (and educated) about the foreclosure process is a good real estate attorney. The problem there is the big $$ they’d just to educate you. The most common solutions from an attorney is “declare bankruptcy” (which of course isn’t a permanent solution and usually makes things worse (see this)), or “sorry, there’s nothing you can do, just accept it”. Lots of $$, and not much help!

As we sat and talked about their situation, I assured them I was hear to answer all of their questions and I would do whatever I could, and no charge to them, to solve their problem. After each question he asked, and I answered, I could see the fear slowly disappear, and relief come over him. They’re in the best hands now, and they knew it.

I can’t help everyone, but even when I can’t help, people are better off because they understand the process.

Knowledge = Power = Control = Less Fear

Until tomorrow morning...

Joel

Financial Reality Check

2006-03-13T03:41:00.000-05:00

Over the weekend (yes, I do work on weekends), I spoke with a gal in Battle Creek who was in need of a major “Financial Reality Check”.

She had fallen 6 months behind on her mortgage because of health issues (couldn’t work), but is now back to work. The problem is that the foreclosure sale is 14 days away and she needed about $6K to reinstate the loan.

(“Reinstate” means to bring the loan current and pick right back up where you were).

After talking for a few minutes she told me she really couldn’t afford her regular $600 payments, even if she reinstated it. Despite this realization, she decided to take a $6K hardship withdrawal from her 401(k) to save her house.

Here’s the problem as I see it: She can’t afford $600/mo and because of the late payments on her credit, she knows she won’t be able to refinance for at least 2 full years. She’ll end up in the exact same position in a matter of months (facing another foreclosure). Only at that point, she’ll have taken a major hit on her 401(k), which is supposed to be there for retirement.

She’s having a hard time giving up her house, even though deep down, she knows she can’t afford it. Why? Well, heck, it’s been her home for 36 years!

I can understand this; I just hope for her sake she quickly gives herself a financial reality check and walks away. Otherwise, she’ll be making her situation much, much worse.

More tomorrow – Joel Zieve

How Someone's Payments Can Double

2006-03-10T06:17:00.000-05:00

Yesterday I went to Parchment (just north of Kalamazoo) and spoke with a family who's payment almost doubled within a few months. Here's how that can happen (and it may happen to you).

1) Lender losses insurance information and thinks there's no insurance on the house.
2) Insurance agent sends proof of insurnace, but never follows-up to be sure lender got it.
3) Lender puts a $1000/yr policy on the house, and charges the home owner (double what they usually pay).
4) Lender then forces the creation of an escrow account, and expects the owners to fund it (with about $2500); plus they want the $1K for the policy they just bought.
5) $210 Escrow is added to payment (to pay future taxes and insurance)
6) $290 Escrow shortage "make-up" is added to payment (to pay the $3500 from 3 & 4 above).
7) The mortgage is variable rate, so it goes up $100.

There you have it - $600 to $1200 almost overnight, through no fault of this family.

Obviously, if you're used to a $600 payment and it goes to $1,200, you're not going to be able to keep up - neither could they. That's why they've asked me to come in, stop the foreclosure and purchase their home. I'll have to discount the debt first since they owe more than it's worth, but hey, that's what I do (call me the "Bank Bully" if you have to). The end result will be to allow this family to start over and start rebuilding their credit, while getting them out from this ridiculous house payment.

Don't thing this is rare - I see it often.

Until Monday - Joel Zieve

Home SAS

2006-03-09T06:37:00.000-05:00

Hey, a flight that arrived and departed on time, what do you know! After digging through the rest of the 40+ emails, and snail mail, I'm almost back on track.

I'll be heading out later this morning to visit someone new to help in Parchment. As always, all information is kept confidential - so I'll do my best to share generic information about their story tomorrow morning. I've found that there's always people out there that share similar circumstances with most families I help out.

Over the next few weeks, as I share more stories, I hope you'll see how incredibly rewarding it is to help people that are truly in hopeless situations with their homes and foreclosure. It's like being a super hero!
Later!

Joel

Oh, "SAS"? That's Mom's code for "Safe and Sound".

Welcome

2006-03-08T11:02:00.000-05:00

Just heading back home from a 4-day training event in south-west FL. These are the folks (in FL) that suggested that having a BLOG would be a great way to futhur help the people I work with to stop their foreclosures in the Kalamazoo an SW Michigan area.

Anyway, this is just a quick welcome as I have to jump on the plane shortly. So, welcome to the BLOG - who knows where this will go, but I know we'll be exploring solutions for dealing with foreclosure.

Stay tuned - and WELCOME!

Joel